UAE OPEC Exit: Trump’s Reaction and Oil Market Impact

The United Arab Emirates has withdrawn from the Organization of the Petroleum Exporting Countries (OPEC) after 60 years of membership, a move that represents a significant blow to the oil cartel and its de facto leader, Saudi Arabia.

As the third-largest oil producer within the group, the departure of the UAE is expected to weaken the organization’s long-standing ability to use collective production levels to influence global oil market prices.

Strategic Rationale and the New Energy Age

In a statement released on April 28, 2026, the UAE’s energy ministry indicated that exiting the cartel would provide the nation with greater flexibility to respond to a “new energy age” in alignment with its long-term strategic and economic vision.

The UAE first joined OPEC in 1967 through the Emirate of Abu Dhabi and maintained its membership following the formation of the UAE in 1971.

Market Volatility and Regional Conflict

The withdrawal occurs as global energy markets face what has been described as the biggest supply crisis in history. The market is currently in the ninth week of a US-Israeli war on Iran, which has resulted in the blockage of a fifth of the world’s seaborne oil flowing from Gulf producers through the Strait of Hormuz.

According to the World Bank, this conflict has triggered the largest loss of oil supply on record, contributing to extreme volatility in the oil market.

U.S. Geopolitical Influence

The exit is viewed as a victory for US President Donald Trump, who has frequently criticized OPEC. Trump has accused the organization of ripping off the rest of the world by artificially inflating oil prices through the restriction of production.

Adding to the strategic alignment between Washington and Abu Dhabi, Trump confirmed last week that the United States had discussed providing a financial lifeline to the UAE. Under this proposed arrangement, the central banks of the two countries could agree to exchange equivalent amounts of their respective currencies if the crisis in the Middle East continues to deepen.

The Structure and History of OPEC

OPEC was established in 1960 by five founding members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization was created to defend the interests of major oil exporters by coordinating production to ensure steady revenue.

Current membership, beyond the founders, includes:

• Algeria
• Equatorial Guinea
• Gabon
• Libya
• Nigeria
• Republic of the Congo

In 2016, OPEC expanded its influence by partnering with 10 other oil producers, including Russia, to form the wider OPEC+ alliance during a period of low oil prices.

The organization typically manages global prices by agreeing on production quotas; increasing supply to lower prices when necessary, or reducing supply to maintain higher prices when demand drops.